In news that is likely to have an impact on the world economic situation, Italian Prime Minister Berlusconi has announced he will resign as PM once key economic votes are cast later this month. The votes will be on austerity packages demanded by other European nations.

In the short term the news has seemed to have a positive impact on US markets (the news came after European markets closed). Berlusconi has been a very controversial and scandal plagued leader over the past few years.

However those gains could be short lived. The resignation will likely result in new elections and that could cause further chaos and instability.

The European economy is teetering on collapse and a failure there would obviously have a serious impact on the US economy.

Stay tuned gang for the new future.